Division Z of Sage Ltd. manufactures a product called A12. Current data for Division Z are as follows:

	Capacity	60539
	Current production & sales	50938

	Per unit data
		Selling price	$90.26
		Variable costs - production	35.38
		Variable costs selling and administrative	14.06
	Fixed costs (total)		$780228

65% of the variable and selling administrative costs would not be incurred on any internal transfers.

Division W of Sage Ltd. currently buys 20932 units of A12 yearly from an outside supplier. Division W would like to buy the 20932 units of A12 it needs annually from Division Z.

What is the per unit opportunity cost of lost sales if the internal transfer takes place?

Select one:

a. $40.82

b. $22.10

c. $15.12

d. $27.04

PLEASE ANSWER ASAP